While the economy is slowly improving in the wake of the recession, many homeowners are still struggling in the aftermath of the housing crisis. This is particularly true in New Jersey, where nearly eight percent of homes are behind on mortgage payments. Compared to all other states, New Jersey has the second most homes in foreclosure.
If you are struggling to keep up on your mortgage payments like so many other New Jersey residents, there are home mortgage modification options that can help you. An attorney with experience in loan modification is the best resource for exploring your full range of options. A new measure in the New Jersey legislature might also eventually provide some relief for struggling homeowners.
A bill advanced by a panel in the New Jersey Assembly on June 6 would create an initiative known as the Mortgage Assistance Pilot Program. The Mortgage Assistance Pilot Program would help those who are behind on a mortgage provided by the New Jersey Housing and Mortgage Finance Agency by lowering the interest rate and even the principal balance.
Under the Mortgage Assistance Pilot Program, principal balance on a mortgage could be reduced by up to a third. If the homeowner later sold the house, the state would receive a percentage of the sale proceeds equal to the percentage of the principal balance reduction. Alternately, if the homeowner stayed in the home, the amount of the mortgage principal reduction could be repaid over 10 years starting when the mortgage had been paid in full.
The Mortgage Assistance Pilot Program is an interesting idea. But, it is not law yet, and even if it is approved, it will begin only as a trial program for three years. If you can’t wait to see what the government might do to help save your home, there are other options, and you should seek legal advice to learn more about what they are.
Source: The Star-Ledger, “Assembly panel clears bill to help distressed homeowners,” Tom De Poto, June 7 2013